Trump Says US-India Relations Strong but Tariff Disputes Remain Unresolved

New York/Washington, Sept 2025 : President Donald Trump has reiterated that the United States enjoys a strong relationship with India but described the partnership as “one-sided” for many years, accusing New Delhi of imposing “tremendous tariffs” on American goods.

Speaking at the White House on Tuesday, Trump responded to a question on whether his administration was considering rolling back tariffs on Indian imports. “No, we get along with India very well,” he said, before emphasizing that for decades the trade relationship was tilted against the United States.

According to Trump, India’s tariff structure has historically limited American exports while allowing Indian goods to flow freely into the US market. “India was charging us tremendous tariffs, about the highest in the world,” he remarked. “We weren’t doing much business with them, but they were doing business with us because we weren’t charging them—foolishly.”

Harley Davidson Example

Trump highlighted the plight of US motorcycle manufacturer Harley Davidson, which he said struggled to enter the Indian market due to a 200 percent tariff. “So what happens? Harley Davidson went to India and built a plant there, so they don’t have to pay tariffs. The same thing as us,” he noted, criticizing India’s protectionist policies.

Recent Strains in Trade Relations

The president’s remarks come amid escalating trade tensions between Washington and New Delhi. On August 27, the US imposed a cumulative 50 percent tariff on Indian imports. This included a 25 percent reciprocal duty and an additional 25 percent levy linked to India’s continued purchase of Russian oil. The move represents one of the highest tariff burdens faced by any US trading partner.

India, in turn, has denounced the tariffs as “unjustified and unreasonable.” Prime Minister Narendra Modi has stressed that his government will not compromise on the interests of farmers, cattle-rearers, and small-scale industries. “Pressure on us may increase, but we will bear it,” Modi said, signaling India’s determination to defend its economic interests.

India’s Position

New Delhi maintains that, like any major economy, it has the right to adopt policies that protect its national interest and economic security. Officials have suggested that India will continue to explore countermeasures if Washington does not reconsider its tariff stance.

Bilateral Trade Snapshot

Despite these tensions, the US and India remain significant trading partners. In 2024–25, bilateral trade in goods stood at USD 131.8 billion, with India exporting USD 86.5 billion worth of goods to the US while importing USD 45.3 billion.

A Complex Partnership

Trump also hinted that India had “offered” to reduce tariffs to zero, but expressed skepticism about the timing. He argued that India continues to rely heavily on Russian oil and military equipment while purchasing relatively little from the US.

While both sides insist that overall relations remain strong, the ongoing tariff dispute highlights the challenges of balancing strategic partnership with economic competition.